Ohio Caught In Crossfire

The Bloodhorse reports (here) that the Ohio State Racing Commission has removed 160 days of racing in the state by eliminating winter racing at Beulah Park and the spring/summer meet at River Downs. I can't say that I am surprised. In an economy where banks are being closed, share prices have been cut in half, and unemployment is soaring, it makes sense that the thoroughbred product is being trimmed as well. What is unfortunate however is that one locality has to bear the brunt of the cut. It would make more sense that the loss be shared nationally by all tracks by everyone dropping one day to a four day or three day racing schedule thereby immediately reducing the total racing product. As it stands there is simply too much racing for what handle remains. Tracks have fixed costs to open their doors and by eliminating a day means a reduction in overhead. Fewer races also mean that the horse population has to squeeze into larger fields resulting in larger pay outs for bettors. To horsemen it means fewer choices in conditions so less sandbagging and more competition in the claiming box as horses have to drop down or sit out. To the general public racing becomes less frequent and therefore more noteworthy when it does occur.

The loss of dates however occurred because of the wrong reason, squabbling over ADW revenue. I have to side with the tracks on this issue. Simulcasters have the least overhead but take the lion's share of the take out. Simulcasters are the few entities in this sport who do well in relation to what they provide which is mainly a chair, a television, and someone to collect the wager. (Those who visit some of these simulcasters even argue that you don't even get a chair as the facilities are that dirty and run down.)

Let's face it simulcasters have a sweet deal and they aren't about to give it up. I can't see the simulcasters ever agreeing to a fee structure that actually represents what their costs are and then providing an adequate return. The only way to circumvent this conflict is to eliminate it all together by having the tracks take ownership of their state's hubs or having a national entity take ownership of all the simulcasting platforms whether they are online, television, or brick and mortar. By eliminating the middle man revenue can be retained and disbursed appropriately as the simulcasters would then function at cost to the tracks, funneling the rest into the purse structure or into other initiatives such as take out reduction, wagering rewards, or into financial incentives to keep fan favorites racing longer.

Perseverance!